Bonds drop, call rates turn lower

Government bonds (G-Secs) dropped further on selling pressure from banks and corporates and the Interbank call rates also lower due to lack of demand from borrowing banks amidst ample liquidity situation in the banking system.
The 7.59 per cent government security maturing in 2026 dipped to Rs 103.0250 from Rs 103.28 previously, while its yield gained to 7.14 per cent from 7.10 per cent.
The 7.59 per cent government security maturing in 2029 slipped to Rs 103.20 from Rs 103.58, while its yield moved up to 7.20 per cent from 7.15 per cent.
The 7.88 per cent government security maturing in 2030 eased to Rs 105.9150 from Rs 106.26. While, its yield rose to 7.19 per cent from 7.15 per cent.

The 7.61 per cent government security maturing in 2030, the 7.68 per cent government security maturing in 2023 and the 7.72 per cent government security maturing in 2025 were also quoted lower at Rs 103.91, Rs 103.04 and Rs 103.42, respectively.
The overnight call money rates finished lower at 6.10 per cent from Tuesday's level 6.40 per cent. It resumed higher and moved in a range of 6.50 per cent and 6.10 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 30.82 billion in 6-bids at the overnight repo auction at a fixed rate of 6.50 per cent as on today, while its sold securities worth Rs 108.28 billion from 27-bids at the overnight reverse repo auction at a fixed rate of 6.00 per cent as on August 17.